BlackBerry(BB) - 2024 Q4 - Annual Results

IoT Division Performance - IoT division achieved record quarterly revenue of $66 million, a 25% year-over-year increase, with a gross margin of 85%[3] - IoT segment revenue grew from $53 million in February 2023 to $66 million in February 2024, an increase of 24.5%[22] - IoT segment gross margin improved from 81% in February 2023 to 85% in February 2024[22] - BlackBerry launched QNX® Software Development Platform 8.0 and QNX® Sound, targeting next-generation automotive and IoT systems[5] - QNX royalty backlog grew 27% year-over-year to $815 million[2] - QNX Royalty Backlog totaled $815 million for the three months ended February 29, 2024[42] Cybersecurity Division Performance - Cybersecurity division revenue increased by 5% year-over-year to $92 million, with ARR growing 3% sequentially to $280 million[3] - Cybersecurity segment revenue increased from $88 million in February 2023 to $92 million in February 2024, a growth of 4.5%[22] - Cybersecurity segment gross margin increased from 59% in February 2023 to 65% in February 2024[22] - Cybersecurity Annual Recurring Revenue (ARR) reached $280 million for the three months ended February 29, 2024[42] - Cybersecurity Dollar-Based Net Retention Rate (DBNRR) stood at 85% for the three months ended February 29, 2024[42] - Cybersecurity Total Contract Value (TCV) billings amounted to $91 million for the three months ended February 29, 2024[42] Financial Performance Overview - Total company revenue for Q4 was $173 million, with non-GAAP and GAAP gross margin increasing to 75%[3] - Adjusted EBITDA for Q4 was $21 million, with cash used by operations decreasing by 52% sequentially to $15 million[3] - Full-year revenue for FY24 was $853 million, including $218 million from the sale of a legacy patent portfolio in Q1[4] - BlackBerry expects FY25 revenue to be between $586 million and $616 million, with IoT revenue projected at $220-$235 million and Cybersecurity revenue at $350-$365 million[7] - Cash and cash equivalents decreased from $295 million in February 2023 to $175 million in February 2024, a decline of 40.7%[19] - Net loss improved from $734 million in February 2023 to $130 million in February 2024, a reduction of 82.3%[21] - Total segment gross margin improved from 67% in February 2023 to 75% in February 2024[22] - Total assets decreased from $1,679 million in February 2023 to $1,395 million in February 2024, a decline of 16.9%[19] - Gross margin for the three months ended February 29, 2024, was $129 million, compared to $100 million in the same period last year, with a gross margin percentage of 74.6%, up from 66.2%[27] - Adjusted operating expense for the three months ended February 29, 2024, was $113 million, down from $118 million in the same period last year[28] - Net loss for the three months ended February 29, 2024, was $56 million, compared to a net loss of $495 million in the same period last year, with adjusted net income of $16 million[29] - Research and development expense for the three months ended February 29, 2024, was $40 million, down from $48 million in the same period last year, with adjusted R&D expense of $38 million[30] - Adjusted EBITDA for the three months ended February 29, 2024, was $(12) million, compared to $(17) million in the same period last year, with an adjusted EBITDA margin of 12%[31] - Gross margin for the fiscal year ended February 29, 2024, was $520 million, compared to $419 million in the previous fiscal year, with a gross margin percentage of 61.0%, down from 63.9%[33] - Adjusted operating expense for the fiscal year ended February 29, 2024, was $487 million, down from $516 million in the previous fiscal year[34] - Net loss for the fiscal year ended February 29, 2024, was $130 million, compared to a net loss of $734 million in the previous fiscal year, with adjusted net income of $31 million[35] - Adjusted EBITDA for the fiscal year ended February 29, 2024, was $57 million, compared to $(71) million in the previous fiscal year, with an adjusted EBITDA margin of 7%[37] - Free cash usage for the fiscal year ended February 29, 2024, was $10 million, compared to $270 million in the previous fiscal year[40] Licensing and Other Segment Performance - Licensing and Other segment revenue rose from $10 million in February 2023 to $15 million in February 2024, a 50% increase[22] - Licensing and Other segment gross margin rose from 60% in February 2023 to 87% in February 2024[22] Corporate and Strategic Developments - The company completed a $200 million convertible notes offering and repaid $150 million of short-term debentures[5] - BlackBerry appointed Philip Brace, an IoT industry veteran, to its Board of Directors[5] - Recurring Software Product Revenue Percentage was approximately 90% for the three months ended February 29, 2024[42]